Revenue of $93.2 million, up $21.4 million from prior quarter ending January 31, 2013

United States/Canada region revenue up 63% compared to the same quarter last year

Adoption of the recently released state-of-the-art technology in DreamCatcher replay for a major sports league, and the EXE 46Tb/s Ethernet SDN switching platform for a major network, resulted in over $15 million in total sales

Net earnings of $21.3 million for the quarter

Fully diluted earnings per share increased 61% to $0.29 for the quarter as compared to $0.18 one year ago

Selected Financial Information

Consolidated Statement of Earnings Data

(in thousands of dollars, except per share amounts)

Q3 ' 14

Q3 ' 13

Revenue

$

93,185

$

71,771

Gross Margin

53,737

40,272

Earnings from operations

28,223

17,108

Net earnings

21,349

13,179

Fully-diluted earnings per share

$

0.29

$

0.18

Selected Financial Information

Consolidated Balance Sheet Data

(in thousands of dollars)

Q3 ' 14

YE ' 13

Cash and instruments held for trading

$

118,782

$

220,668

Working capital

271,609

352,164

Total assets

388,797

465,307

Shareholders' equity

329,222

406,797

Revenue

For the quarter ended January 31, 2014, revenues were $93.2 million as compared to revenues of $71.8 million for the quarter ended January 31, 2013. For the quarter, revenues in the United States/Canada region were $55.0 million, an increase of $21.2 million as compared to $33.8 million in the same quarter last year. The International region had revenues of $38.2 million, an increase of $0.2 million as compared to $38.0 million in the same quarter last year.

Gross Margin

For the quarter ended January 31, 2014 gross margin was $53.7 million compared to $40.3 million in the same quarter last year. Gross margin percentage was approximately 58% compared to 56% in the same quarter last year.

Earnings

For the quarter ended January 31, 2014 net earnings were $21.3 million as compared to $13.2 million in the corresponding period last year.

For the quarter ended January 31, 2014, earnings per share on a fully-diluted basis were $0.29 as compared to $0.18 in the same period in 2013.

Operating Expenses

For the quarter ended January 31, 2014 selling and administrative expenses were $14.9 million, an increase of $1.2 million or 9% compared to $13.7 million for the quarter ended January 31, 2013.

For the quarter ended January 31, 2014 gross research and development expenses increased by $1.9 million or 15% as compared to the corresponding period in 2013. Gross research and development expenses represented approximately 16% of revenue for the quarter ended January 31, 2014.

Liquidity and Capital Resources

The Company's working capital as at January 31, 2014 was $271.6 million as compared to $352.2 million on April 30, 2013.

Cash and instruments held for trading were $118.8 million as at January 31, 2014 as compared to $220.7 million on April 30, 2013.

Cash generated by operations was $24.4 million for the quarter ended January 31, 2014 as compared to $22.0 million for the quarter ended January 31, 2013. Before taking into account taxes and the changes in non-cash working capital, the Company generated $24.5 million from operations for the quarter ended January 31, 2014 compared to $16.8 million for the same period last year.

The Company used $2.6 million in investing activities largely a result of purchases in capital assets during the quarter ended January 31, 2014, compared to $6.2 million used during the quarter ended January 31, 2013.

For the quarter ended January 31, 2014, the Company used cash in financing activities of $112.6 million which was principally a result of the payment of dividends of $115.8 million, including a special dividend of $104.0 million, offset by the issuance of capital stock of $3.5 million.

Shipments and Backlog

Purchase order backlog at the end of February 2014 was in excess of $43 million and shipments during the month of February 2014 were $25 million.

Dividend Declared

Evertz Board of Directors declared a regular quarterly dividend on March 4, 2014 of $0.16 per share.

The dividend is payable to shareholders of record on March 14, 2014 and will be paid on or about March 21, 2014.

Selected Consolidated Financial Information

(Unaudited)

(in thousands of dollars, except earnings per share and share data)

Three month period ended

Nine month period ended

January 31,

January 31,

2014

2013

2014

2013

Revenue

$

93,185

$

71,771

$

238,287

$

250,890

Cost of goods sold

39,448

31,499

101,184

106,103

Gross margin

53,737

40,272

137,103

144,787

Expenses

Selling and administrative

14,913

13,659

40,196

39,118

General

2,438

1,393

5,365

4,290

Research and development

15,049

13,098

43,133

37,502

Investment tax credits

(3,168

)

(3,519

)

(9,033

)

(9,569

)

Foreign exchange gain

(3,718

)

(1,467

)

(7,183

)

(2,790

)

25,514

23,164

72,478

68,551

Earnings before undernoted

28,223

17,108

64,625

76,236

Finance income

496

699

1,720

1,576

Finance costs

(61

)

(103

)

(275

)

(269

)

Other income and expenses

47

276

(38

)

272

Earnings before income taxes

28,705

17,980

66,032

77,815

Provision for (recovery of) income taxes

Current

7,672

3,968

19,387

19,280

Deferred

(316

)

833

(2,140

)

1,505

7,356

4,801

17,247

20,785

Net earnings for the period

$

21,349

$

13,179

$

48,785

$

57,030

Net earnings attributable to non-controlling interest

68

195

349

550

Net earnings attributable to shareholders

21,281

12,984

48,436

56,480

Net earnings for the period

$

21,349

$

13,179

$

48,785

$

57,030

Earnings per share

Basic

$

0.29

$

0.18

$

0.65

$

0.77

Diluted

$

0.29

$

0.18

$

0.65

$

0.77

Consolidated Balance Sheet Data

As atJanuary 31,
2014

As atApril 30,
2013

Cash and instruments held for trading

$

118,782

$

220,668

Inventory

125,324

111,619

Working capital

271,609

352,164

Total assets

388,797

465,307

Shareholders' equity

329,222

406,797

Number of common shares outstanding:

Basic

74,279,746

73,632,566

Fully-diluted

78,068,346

78,246,966

Weighted average number of shares outstanding:

Basic

73,994,700

73,300,647

Fully-diluted

74,398,758

73,816,338

Forward-Looking Statements

The report contains forward-looking statements reflecting Evertz's objectives, estimates and expectations. Such forward looking statements use words such as "may", "will", "expect", "believe", "anticipate", "plan", "intend", "project", "continue" and other similar terminology of a forward-looking nature or negatives of those terms.

Although management of the Company believes that the expectations reflected in such forward-looking statements are reasonable, all forward-looking statements address matters that involve known and unknown risks, uncertainties and other factors. Accordingly, there are or will be a number of significant factors which could cause the Company's actual results, performance or achievements, or industry results to be materially different from any future results performance or achievements expressed or implied by such forward-looking statements.

Conference Call

The Company will hold a conference call with financial analysts to discuss the results on March 4, 2014 at 5:00 p.m. (EDT). Media and other interested parties are invited to join the conference call in listen-only mode. The conference call may be accessed by dialing 1-416-849- 6166 or toll-free (North America) 1-866-250-6267.

For those unable to listen to the live call, a rebroadcast will also be available until April 4, 2014. The rebroadcast can be accessed at 1-416-915-1035 or toll-free 1-866-245-6755. The pass code for the rebroadcast is 988819.

About Evertz

Evertz Technologies Limited (TSX:ET) designs, manufactures and markets video and audio infrastructure solutions for the television, telecommunications and new-media industries. The Company's solutions are purchased by content creators, broadcasters, specialty channels and television service providers to support their increasingly complex multi-channel digital, high definition television ("HDTV") and next generation high bandwidth low latency IP network environments, and by telecommunications and new-media companies. The Company's products allow its customers to generate additional revenue while reducing costs through the more efficient signal routing, distribution, monitoring and management of content as well as the automation of previously manual processes.